NBU allows banks to buy cash foreign currency at exchange rate lower than official one

MOSCOW. Aug 9 (Interfax) - Ukrainian banks from August 8 can purchase cash foreign currency using an exchange rate established by them, whereas previously they were not allowed to set their exchange rate lower than the official exchange rate of the National Bank of Ukraine (NBU) valid on the day of the transaction.

These amendments were introduced by the NBU's August 5 directive, published on the bank's website, the Ukrainian media said.

Furthermore, the NBU lifted the lower limit in the form of its official exchange rate for transactions via an electronic payment, when card-issuing banks deduct money from a client's account in foreign currency if an inter-bank transfer in such a transaction takes place in the hryvnia.

It also applies to national currency transfers to a client's account, if an inter-bank transfer in such a transaction takes places in a foreign currency.

As reported, on July 21, the NBU lowered the hryvnia official exchange rate by 25% to 36.5686 hryvnia/$1.

Presently, the exchange rate for buying the U.S. dollar on the cash market is noticeably higher than the official exchange rate. Most Ukrainian banks have set it at 38.4-39 hryvni/$1. However, some banks declare it at the level of the official exchange rate, or a level as low as possible until recently.